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Finance Committee Minutes Page 3 <br /> December 10,2013 <br /> Mr. LaVigne asked if it is possible to go back and look at the circumstances in 2010. <br /> He stated that they did not meet the goals the way they were drafted in the <br /> agreement, but he felt they did meet the intent of the goal in the agreement. He <br /> requested staff to have a conversation with the State regarding what actually <br /> happened to see if they would agree to accept an amendment or rewriting the <br /> agreement. <br /> Lundberg stated that if the agreement was rewritten, he suggested including a <br /> statement that the bank would indemnify the city against any fees that may be <br /> imposed by the state. He stated that the bank has only received 42% of the $300,000 <br /> and has met almost 70% of the goal. <br /> Motin stated his inclination would be to let the bank continue receiving the <br /> abatement up to the percentage the job goals met (approximately$210,000). He <br /> stated he had a concern from a policy point, as he would not want other businesses <br /> to think they did not necessarily have to meet their goals. He stated he would like to <br /> address this in the policy for future requests. Motin stated that the request to the <br /> State to amend the agreement should state the down turn in economy and the fact <br /> that banks were hit very hard as the extenuating circumstance as to why the Finance <br /> Committee amended the agreement. <br /> Motion by Lundberg and seconded by Motin to recommend the EDA amend <br /> the Tax Abatement Agreement with The Bank of Elk River to reduce the <br /> number of new full-time jobs required from 20 to 13,with a decrease in the tax <br /> abatement amount to reflect this reduction (approximately 65%). <br /> Toth stated that the motion should include that this reduction will only be made for <br /> this project. Motin stated that he would prefer to take some time to review the policy <br /> separate from this issue,rather than include in this motion. <br /> Motion by Lundberg and seconded by Motin to amend original motion to <br /> recommend the EDA amend the Tax Abatement Agreement with The Bank <br /> of Elk River to reduce the number of new full-time jobs required from 20 to <br /> 13,with a decrease in the tax abatement amount to correspondingly reflect <br /> this reduction (approximately 65 percent); and to include an indemnification <br /> clause that The Bank of Elk River will be responsible for any issues or fees <br /> the State may have. <br /> Mr. LaVigne stated that The Bank of Elk River has received a check every six <br /> months and asked if Ms. McDowell Poehler knew how the payment would be <br /> handled and if the payment would be prorated. Ms. McDowell Poehler stated she did <br /> not have that information at this time. <br /> Motion carried 4-0-1. Commissioner Ovall abstained. <br /> P—ONEDED BY <br /> NATURE <br />